Brokerage commission may rise this fall

Beginning in October at the latest, the brokerage commission for sale and purchase of Real Estates is expected to increase up to 100%.

Before offering a brokerage service, it will also be required to conclude a formal brokerage contract, which specifies projected price and brokerage commission between a broker and customer. The quality of brokerage service will be improved, including an increase in broker`s compensation for any damages.

The Ministry of Construction and Transportation, on July 30th, ordered local autonomous bodies to revise the ordinance regarding real estate brokerage commission so that they could implement it from October 1.

Each city and provincial government is required to revise the ordinance by obtaining an approval of their respective council. They are expected to implement the new regulation between the end of August and October 1.